Stock will keep sliding until the company runs out of cash completely. It already owes 5Million that it MUST repay to the owner P.L. in 2012. Cash is barely enough to fund operations for 1 more year (most likely 6 months), and the company NEVER made any money since its inception. Can someone please tell me (Question that must be raised on the Conference call this morning): HOW in the hell is the company going to start making money now after nearly 15 years in business with LOSSES, and DEBT that is starting to Pile UP, Shrinking Sales. I know they had top-line revenue growth of 31%, but they need to grow revenues by more than 300% from here on out to sustain the damage that has already been done, and stop the bleeding, let alone start growing and moving in the right direction (Black ink)???
Oh, by the way, here is the clip from the 10-Q from the company's own CFO:
We have incurred losses since our inception, and losses are expected to continue through at least fiscal years 2011 and 2012. We have funded the losses principally with cash flow from operations, funding of advances under the Loan, proceeds from public and private equity financings, payments from Medtronic related to the sale of certain assets related to our ENT EndoSheath technology business, and the sale of other assets. We believe that our cash, short-term investments, and $0.5 million of capital available, subject to certain conditions, under the Loan will be sufficient to fund our working capital, capital expenditures, and future operating losses until September 30, 2011. However, if our performance expectations fall short (including regaining sales or profits historically generated from Medtronic) or our expenses exceed expectations, we will need to either secure additional financing or reduce expenses or a combination thereof, and in such instance, the failure to do so would have a material adverse impact on our financial condition. There can be no assurance that any contemplated external financing will be available on terms acceptable to us, if at all, or we will be able to reduce expenses.
so if they expect to lose money in 2011 and 2012 where are they going to get more cash from since they allready borrowed the 4.5 million in 6 months they had 2.6 million in rev with 2.1 million in costs to produce it they need a good plan this is planed to fail